ComEd Introduces Transmission Security Agreements To Protect Customers From $2B In Costs From New Large Projects

ComEd has announced the introduction of its first set of Transmission Security Agreements (TSAs), designed to protect existing customers and ensure fairness in the cost of connecting and providing transmission service to new large projects requesting service from the grid. These agreements are intended to safeguard existing customers from bearing the costs associated with proposed large load projects while ensuring that new projects contribute their fair share, even if they do not fully develop as planned.

The new agreements include revenue commitments tied to transmission services requested by eight large customers, representing a forecasted new load exceeding 6.5 gigawatts. Collectively, these agreements are expected to prevent existing ComEd customers from shouldering more than two billion dollars in transmission charges over a ten-year period. Under the TSAs, all existing customers are protected from transmission service costs that should be borne by new large load projects, even if those projects fall short of their anticipated load.

Without these agreements, other customers could be required to cover such costs. The TSA structure ensures that if a project does not meet its expected load, the developer responsible for the project covers the shortfall. Payments made under the TSAs reduce, on a dollar-for-dollar basis, the costs that would otherwise be passed on to other customers. This approach demonstrates ComEd’s commitment to protecting existing customers from unfair financial impacts in northern Illinois. As part of the agreements, ComEd requires a firm financial commitment from developers of projects 50 megawatts or larger. This “take or pay” arrangement involves providing collateral for ten years of transmission service revenues based on the load the developer has requested ComEd to serve.

Gil Quiniones, President and CEO of ComEd, stated, “These new transmission security agreements are a model for how utilities and the developers of large load projects can collaborate to meet growing power demands responsibly. By having TSAs in place, ComEd can ensure that customers who impose very large demands on the system pay their fair share.”

Adrian Anderson, Senior Vice President of Global Energy for Equinix, said, “Northern Illinois remains a key market for continued growth. We are proud to partner with ComEd on this initiative, which brings greater transparency to the development process while supporting ongoing growth and job creation across our sites.”

The TSA framework provides a replicable approach for future large load requests and reduces speculative projects. This ensures that ComEd makes the appropriate investments needed to serve new large loads while maintaining system reliability. Rightsizing the pipeline of large load requests and limiting speculative projects is essential, as future load projections influence energy supply costs in the wholesale power markets. Last year, the regional grid operator PJM noted that rising demand, coupled with constrained supply expansion, has contributed to increasing supply costs. While ComEd does not own generation, participate in auctions, or profit from PJM-related costs, these expenses are passed directly to customers without any markup.

The new TSAs are part of ComEd’s broader efforts to protect customers as supply prices continue to rise. These efforts include expanding financial assistance programs for customers most in need, advocating for new generation to meet growing demand, and proposing retail large load tariff modifications currently under review by the Illinois Commerce Commission. The proposed changes would require higher initial application deposits and larger deposit requirements for the company’s electrical infrastructure installed on a new customer’s property if the project does not meet its expected load or associated revenue requirements. A decision from the Illinois Commerce Commission is expected early this year.